London – Revolut, the UK-based financial technology firm, is enjoying a surge in profitability but acknowledges a growing potential for reputational damage stemming from its involvement with energy-intensive industries like cryptocurrency and artificial intelligence. The company reported a 57% increase in annual profits, reaching £1.7 billion for 2025, alongside a 46% rise in revenues to £4.5 billion. However, its latest annual report flags the increasing scrutiny surrounding the environmental impact of these sectors as a key risk to its continued success.
The warning comes as Revolut solidifies its position in the financial landscape, recently securing a full UK banking license after a five-year wait for regulatory approval. This milestone allows the company to offer a broader range of banking services and compete more directly with traditional financial institutions. The company now operates as a licensed bank in over 30 of its 40 markets worldwide and is actively pursuing a US banking license. But the expansion, and continued support for sectors with large carbon footprints, isn’t without potential fallout.
The concern centers on the substantial energy demands of both cryptocurrency mining, particularly for Bitcoin, and the rapidly expanding infrastructure required for artificial intelligence datacenters. These demands are further exacerbated by geopolitical factors, including the impact of the conflict in the Middle East on global energy prices. The US-Israel war on Iran, and its effect on oil and gas supplies via the Strait of Hormuz, has contributed to a steep increase in energy costs over the past month, according to reporting from The Guardian.
Revolut’s annual report explicitly states that “shifting attitudes towards energy-intensive activities, including artificial intelligence, metals mining, and the carbon footprint of high-profile cryptocurrencies could also affect demand for Revolut’s services and present reputational risks.” This acknowledgement signals a growing awareness within the company of the potential backlash from customers and investors increasingly focused on environmental, social, and governance (ESG) factors.
Growth and Expansion Amidst Environmental Concerns
Despite the acknowledged risks, Revolut continues to experience significant growth. The company added 16 million individual customers in 2025, bringing its total customer base to 68.3 million, including 13 million in the UK. Business customers also increased by a third, reaching 767,000. Revolut aims to reach 100 million customers globally by mid-2026. This expansion is fueled by its popular crypto trading platform and a growing suite of financial services.
The company’s valuation reflects this success. Revolut was valued at $75 billion (£55 billion) in a fundraising round last year, demonstrating strong investor confidence. The company is now rolling out current accounts to a select group of new UK customers, with plans for a wider launch. Beyond traditional banking services, Revolut is exploring new avenues, including mortgage refinancing, which it launched in Lithuania in May 2025.
Internal Practices and Executive Compensation
Revolut’s internal operations have also drawn scrutiny. Last year, reports detailed the company’s use of a “Karma” system to track staff behavior and influence bonus payouts. The system, which assigns points based on employee actions, has been revised to improve standardization and transparency, according to the annual report. The company stated it aimed to make the point allocation process and its impact on remuneration clearer to all staff.
Executive compensation remains high. Nik Storonsky, Revolut’s chief executive and founder, received £401,000 in 2025, a slight increase from £397,000 the previous year. He also benefited from a $200 million to $300 million windfall from a share sale, reflecting the company’s soaring valuation.
Navigating a Changing Regulatory Landscape
Revolut’s pursuit of a US banking license underscores its ambition to become a truly global financial institution. However, the company faces a complex and evolving regulatory landscape, particularly in the cryptocurrency space. New regulations surrounding crypto assets are anticipated, and, as reported by The Guardian, could potentially benefit industry insiders and figures like former President Trump.
The company’s decision to publicly acknowledge the risks associated with energy-intensive industries suggests a proactive approach to managing its reputation. However, the extent to which Revolut will alter its business practices to address these concerns remains to be seen. The company’s future success may depend on its ability to balance growth with environmental responsibility and navigate the increasingly complex regulatory environment.
Looking ahead, Revolut will be closely watched as it expands its US operations and introduces new financial products. The company’s application for a US banking license is currently under review, and a decision is expected in the coming months. Further details on Revolut’s sustainability initiatives and its response to evolving regulatory requirements are anticipated in its next annual report.
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